Global markets failed to find single direction on the last trading session of the week. The Fed decision on raising interest rates, as well as slowdown in annual basic consumer inflation in Japan, keep the investors under pressure.
However, the stocks recovered in mid-session and turned up searching for the way to the uptrend.
Asian markets recap
Most Asian stock exchanges ended the last session of the week with declines amid published data on the continued slowdown in annual basic consumer inflation in Japan.
The news of Japanese inflation in November boosted market expectations that the local central bank would refrain from shrinking its incentives for a long time, while the prices remained far from its target. The report drew attention to the warning of Haruhiko Kuroda, the governor of the Central Bank of Japan, who said on Thursday that rising economic risks would leave the bank open to the idea of increasing rather than shrinking incentives.
On this background the Japanese blue-chip index Nikkei 225 fell by 226.39 points, or 1.11%, ending the day at 20,166.19 points. Following the decision of the Central Bank of Japan, the shares of other financial companies in the country have fallen. The stocks of Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group declined by 2.22% and 2.21%, respectively.
In South Korea, the index Kospi rose by 0.07% to 2,061.49 points.
Australian index S&P ASX 200 declined by 0.69% to 5,467.60 points, with large bank stocks continuing to fall.
On the Chinese markets, the continental index Shanghai Composite wiped out 0.79% of its value, ending the session at 2,516.25 points. Hong Kong’s index Hang Seng rose by 0.51% to 25,753.42 points.
The shares of Tencent Holdings grew by about 4.2% after the Chinese regulators approved some of the company’s new games for sale after a long-term freeze of licenses.
Investor actions have also been influenced by Thursday’s news of charges brought by the US Department of Justice against two Chinese citizens for involvement in a large-scale hacker action. Prosecutors have uncovered a connection between the accused people and the Chinese government.
“China will hardly prove it is not involved in this case”, said the Deputy Chief Prosecutor Rod Rosenstein at a press conference.
European markets mid-session recap
German stocks extended recent declines on Friday, as concerns over rising borrowing costs in the US, political brinkmanship in Washington and fears of a slowing global economy dented investors’ appetite for riskier assets. Meanwhile, the German GfK Consumer Confidence remained pegged at 10.4, edging above the estimate of 10.3 points. On this background, the index DAX 30 started the session with sharp downturns, but later recovered some of the loses, but remains on red. At 13:00 GMT, the index wipes out 20 points to 10,591.05 points.
French stocks fell sharply on Friday with CAC 40 decreasing by 0.28% at mid-session to 4,679.27 points. The stocks of Renault rose by 0.5% after Carlos Ghosn, the former Chairman of Nissan Motor, was re-arrested by Japan authorities on new allegations of financial misconduct. The new charges will help the authorities to extend his detention.
British stocks almost recovered after early losses and currently moving around the levels of the last session closure. The index FTSE 100 is trading at a level of 6,709.84 points in mid-session.
Wall Street pre-market recap
The futures on Wall Street stock indexes pointed to marginal gains on Friday, leaving the major equity indexes on track for a dismal end to the week.
At around 8:20 a.m. ET, Dow Jones Industrial Average futures implied an uptick of around 88 points at the open. Both the S&P 500 and Nasdaq futures also pointed to slight opening gains. However, stocks are on track for steep losses for the trading week and the month of December.